An electronic device may include an electronic display having multiple display pixels that display an image based on dithered image data. The electronic device may also include image processing circuitry that generates the dithered image data based on input image data and a threshold gray level that is greater than one. Generating the dithered image data may include replacing each gray level of the input image data that is less than the threshold gray level with either a zero gray level or the threshold gray level according to a dither pattern.